By the year 2018, which Internet device industry will be larger than all of the rest combined?

The answer is the burgeoning Internet of Things (IoT), in which seemingly ordinary objects are interconnected in order to automate everyday tasks. Some items that are already part of the IoT include thermostats, air conditioners, and door locks.

The IoT could be coming to your home, office, and hometown, courtesy of tech giants such as Apple, Google and International Business Machines. These companies are poised to return a lot of value to investors because of the IoT.

A bunch of things
According to one estimate, in four years the installed base of smart devices will have grown from 5 billion to 18 billion, with the majority considered to be part of the IoT.

The total estimated market value at stake in the IoT is projected to increase from $1.2 trillion today to $14.4 trillion in 2022, according to a projection from Cisco Systems.

In addition to Internet devices, the IoT will also have applications in the following areas that will impact the business-to-business market:

1. Advertising (electronic billboards)

2. Traffic management

3. Waste management

4. Smart electric grids

5. Smart water systems

6. Industrial automation